SAP Streamlines Cross-Border Payments with Digital Currency

SAP revolutionizes cross-border payments with digital currency, addressing challenges for SMEs.

Last updated: June 23, 2023 10:29 AM

Published June 23, 2023 10:29 AM

Last updated: June 23, 2023 10:29 AM

Published June 23, 2023 10:29 AM

SAP, a global leader in enterprise software solutions, has launched a Test Drive program aimed at simplifying and enhancing cross-border payments.

The initiative addresses common challenges faced by small and medium-sized enterprises (SMEs) during international transactions, including high costs, slow processing times, and a lack of transparency.

Yes, you heard that right. @SAP, the largest enterprise software provider in the world that literally every single business is a customer of, is testing cross-border payments settled in USDC for their customers. https://t.co/K203iLFtHl
— Patrick Hansen (@paddi_hansen) June 22, 2023

By leveraging the power of blockchain technology and stablecoins like USDC and EUROC, businesses can now settle cross-border transactions more efficiently, cost-effectively, and transparently.

These stablecoins, which represent tokenized versions of fiat currencies, maintain a 1:1 peg with their underlying currency and are backed by cash holdings or government securities to ensure stability.

To facilitate seamless payment processing, each business partner is required to have a self-custodied wallet, similar to a bank account. The buyer initiates a transaction by using wallet software to input the seller’s wallet details and sign the transaction with a private key.

The blockchain then validates and executes the transaction, enabling the swift transfer of funds represented by USDC or EUROC coins to the seller, typically within minutes.

Through the Test Drive program, SAP offers participants an immersive experience to firsthand explore this innovative approach to cross-border payments. Test users receive simulated USDC as play money, enabling them to simulate payment for a sample invoice.

It’s important to note that the Test Drive operates on a dedicated test network and does not involve real coins or actual payments.

SAP envisions seamlessly integrating this digital currency solution into its underlying ERP systems, including SAP Business One, Business ByDesign, and S/4HANA Cloud.

This integration would enable fully automated processes with autonomous reconciliation, representing a significant step forward in enhancing cross-border payment efficiency.

With the Test Drive initiative, SAP aims to showcase the future of cross-border payments, highlighting the speed, affordability, and reliability that digital currency brings to international transactions.